Nielsen Holdings NLSN has reported second-quarter 2021 adjusted earnings of 43 cents per share, which beat the Zacks Consensus Estimate by 13.2% and grew 22.9% year over year.

Total revenues were $861 million, up 6.2% year over year. The figure surpassed the consensus mark of $855.1 million. On a constant-currency (cc) basis, revenues increased 4.5% year over year.

Solid momentum across Audience Measurement as well as Outcomes and Content drove top-line growth in the reported quarter.

Top-Line Detail

In the second quarter, Audience Measurement revenues rose 4.3% year over year to $629 million (73.1% of total revenues). This was primarily attributed to strength across the digital measurement category.

Outcomes and Content revenues increased 11.5% to $232 million (26.9% of the total revenues), which was driven by the improving Sports business and robust growth in Content.

Nielsen Holdings Plc Price, Consensus and EPS Surprise

Nielsen Holdings Plc price-consensus-eps-surprise-chart | Nielsen Holdings Plc Quote

Operating Details

Adjusted EBITDA increased 11.8% year over year to $370 million. Adjusted EBITDA margin expanded 216 basis points (bps) to 43% in the reported quarter.

Nielsen’s selling, general and administrative expenses were $218 million, increasing 26% year over year.

Operating income was $219 million, up 84% year over year.

Balance Sheet & Cash Flow

As of Jun 30, 2021, the cash and cash equivalent balance was $410 million, down from $1.19 billion on Mar 31, 2021.

As of Jun 30, 2021, gross debt was $5.9 billion, resulting in net debt (gross debt minus cash and cash equivalents) of $5.5 billion.

The company generated $213 million in cash from operations in the reported quarter compared to $45 million in cash used in operations in the previous quarter.

Its free cash flow was $190 million in the second quarter.

2021 Guidance

For 2021, the company revised the revenue growth guidance from 2-3% to 2.5-3%. Organic revenue growth guidance was also revised from 3.5-4.5% to 4-4.5%. The Zacks Consensus Estimate for 2021 revenues is pegged at $3.49 billion.

The company raised the adjusted earnings guidance from $1.47-$1.58 to $1.54-$1.61per share. The consensus mark for the same is pegged at $1.55 per share.

Nielsen revised the guidance for Adjusted EBITDA from$1.470-$1.490 billion to $1.475-$1.490 billion. The guidance for adjusted EBITDA margin has been revised from42.25-42.5% to 42.3-42.6%.

Zacks Rank and Stocks to Consider

Currently, Nielsen carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are KLA Corporation KLAC, Carrier Global Corporation CARR and Trimble Inc. TRMB. Thethree companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term earnings growth rates of KLA, Carrier Global and Trimble are pegged at 14.03%, 13.38% and 10.1%, respectively.

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